Energy Prospectus

PetroBakken's 4th quarter production came in above my forecast. I will update my forecast models for PetroBakken and Gastar (GST) this afternoon. Both companies are in our High Yield Portfolio. - Dan

CALGARY, ALBERTA--(Marketwire - March 12, 2013) - PetroBakken Energy Ltd. (the "Company" or "PetroBakken") (PBN.TO) is pleased to announce our fourth quarter and year-end 2012 financial and operating results.

FINANCIAL & OPERATING HIGHLIGHTS

In this press release, annual comparisons are 2012 compared to 2011 and quarterly comparisons are fourth quarter 2012 compared to fourth quarter 2011, unless otherwise noted. All references to well counts are on a net basis.
•December 2012 average production was 53,200 boepd (84% light oil and liquids weighted), an increase of 6% from December 2011 and on target with our guidance of 52,000 - 56,000 boepd.
•Fourth quarter 2012 production of 47,192 boepd increased 23% over the third quarter of 2012.
•Our operating netback for the fourth quarter was $47.60/boe, down 20% from the fourth quarter of 2011, reflecting significantly lower light oil price realizations.
•Fourth quarter funds flow from operations was $168 million ($0.88 per basic share).
•Proved plus probable reserves at December 31, 2012 were 206.8 million barrels of oil equivalent ("MMboe"), an increase of 10% over 2011 (before dispositions).
•Net capital expenditures were $320 million in 2012, after including net proceeds of $636 million from dispositions of non-core assets.

I will work on the updated forecast model tomorrow as my eyes are giving out on me tonight. I read the PetroBakken press release and, barring a significant drop in oil prices, I see nothing that indicates they intend to reduce dividend payments. They have plenty of liquidity to fund their capital program and keep paying dividends.

2013 OUTLOOK

Production in February 2013, based on field estimates, was over 49,400 boepd (83% light oil and liquids). Our 2013 capital expenditure plan of $675 million is more balanced throughout the year, which will help us reduce production volatility and manage declines while delivering anticipated year-over-year average production growth of 8% to 12%. The 2013 capital plan is expected to deliver an average daily production rate of 46,000 to 48,000 boepd and exit 2013 production of approximately 49,000 to 52,000 boepd.